This month’s entry is going to be short and sweet because we’re recommending a stock we’ve suggested twice before. This company continues to perform well and has made it to the top of our list again this month. We’re talking about Canadian Imperial Bank of Commerce (TSX: CM). The stock is currently trading just below $109 which is nearly 10% below its 52-week high. That’s not a bargain basement price but it’s a decent discount for a stock with a history of steadily increasing price and regularly increasing dividends. Here’s what the five year history looked like a couple of days ago according to Google Finance:
Notice there really wasn’t a bad time to buy this stock over the last five years. Also, have we mentioned the regular dividend increases?! The company has increased the dividend payment at least twice a year, and in some years every quarter! Both the P/E (9.28) and EPS (11.77) continue to be outstanding for this company. Again, it’s worth mentioning that we do not often see a stock with EPS greater than the P/E – a strong indicator of the excellent value of the company. There are only a couple of other stocks on our list that can make that boast and a few more that are close.
So that’s it. CIBC is a company operating in a traditionally stable sector in Canada and continues to offer good value to investors with an attractive price and regular dividends. If you need more convincing, check out our previous posts recommending this stock.